Great American Capital Partners Provides $30 Million to hhgregg, Inc. as part of Wells Fargo-led Financing
- Press Release
I, Kevin Liu , certify that this report reflects my personal beliefs about this company and that no portion of my compensation was, is or will be directly or indirectly related to the specific recommendations or views discussed in this report.
Initiated Coverage on 01/04/2013 with a "Neutral" Rating and Price Target of $20.75
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• Acquisitions. Although the company has not undertaken strategic transactions of late, CTG may pursue acquisitions in the future that could be dilutive to financial results and may result in difficult or expensive integration efforts.
• Competition. The market for IT consulting and staffing services is highly competitive and has low barriers to entry. Competition could negatively impact the company’s bill rates and ability to attract talent.
• Customer Concentration. IBM is the company’s largest customer, accounting for over 20% of revenues. No other customer accounts for greater than 10% of sales.
• Economic Conditions. Demand for IT services and solutions may decline in periods of economic uncertainty or recession. The majority of the company’s contracts are short-term in nature or terminable with limited notice.
• See CTG’s SEC filings for additional risks.